General Management Opinion Articles

February 20, 2013

Historical Trends Hotel Management Contracts

This article, based on findings from an analysis of over 500 management contracts collected by HVS as well as a review of publications on the topic, provides an overview of typical terms for a hotel management contract and examines historical trends observed in the industry. The article is not meant to provide trend information on what is happening in any particular hotel management contracts currently being negotiated but analyzes aggregated data for contracts written during the past three decates in the United States.

By Hans Detlefsen, Managing Director of HVS Global Hospitality Services, HVS

Opinion Article

January 31, 2013

Finally! Relief from abusive ADA litigation in California? Maybe not...

ADA litigation claims have skyrocketed. Since January 2005, 16,530 ADA lawsuits -- lawsuits alleging violations of the Americans with Disabilities Act ("ADA") -- have been filed in federal courts across the country. Even more have been filed in state courts. In this article, two senior members of our Global Hospitality Group® talk about a new law passed in California with the goal of reducing abusive ADA litigation.

By Jim Butler, Partner & Co-Chair Hospitality Practice, Blank Rome LLP, Blank Rome

California, United States

Opinion Article

January 17, 2013

Double Bogie: Bank's Security Interest in Green Fees Cut Off by Club's Bankruptcy

A recent court decision points to a critical difference between the way revenue generated by golf courses and revenue generated by hotels is viewed in a bankruptcy scenario. My partner, Ben Young, reports how one lender found out that the cash flow generated from the green fees of a bankrupt golf course was not part of the lender's collateral. Veteran workout specialists will be reminded of the old "rents versus accounts" issue on hotel revenues that was finally resolved by an amendment to the Bankruptcy Code.

By Bennett Young, JMM

Opinion Article

January 15, 2013

ADA Defense Lawyer: Pool lift deadline of January 31, 2013 looms, but may be a diversion from enterprise-wide ADA compliance

Hotel ADA Defense & Compliance Lawyer with some tips on what you should do now.January 31, 2013 is fast approaching and once again our phones are ringing off the hook and the emails are streaming in. Our hospitality clients want to know the latest being taken by the Department of Justice ("DOJ") on the Americans with Disabilities Act requirements for pool lifts at pools and spas at hotels, resorts, country clubs, golf and tennis facilities and other places of "public accommodation."

By Jim Butler, Partner & Co-Chair Hospitality Practice, Blank Rome LLP, Blank Rome

Opinion Article

January 3, 2013

Hotel Lawyer On Repositioning: The New York Times Reports 39 Percent Increase In Reflagging

Hotel Lawyer on the spike in reflagging hotels. It's often good news for us when the business section of a major newspaper explains what is going on in the hotel sector. (And nice, too, when the paper includes a quote by yours truly.) The topic? How and why hotel owners reflag properties. The reason for the story: the Great Recession has changed just about everything.

By Jim Butler, Partner & Co-Chair Hospitality Practice, Blank Rome LLP, Blank Rome

Opinion Article

October 9, 2012

Hotel Liability for Guest Information -- What you need to know and how to avoid liability

My partner Robert Braun advises hotel owners in a wide range of operational issues, including information management. Because of the ubiquitous use of credit cards by hotel guests during a stay, as well as the growing demand for WiFi availability, hotels have been increasingly targeted by identity thieves. In his article below, Bob explains how hotels' liability for this new type of guest security has grown and what hotels can do to protect their guests' identities.

By Robert Braun, Partner, Jeffer Mangels Butler & Mitchell, LLP, JMM

Opinion Article

August 27, 2012

Dodd-Frank Act presents Hotels with decisions on credit and debit card charges

The Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010 certainly sparked fierce debate about government regulation, consumer choice, innovation and entrepreneurship. The Durbin Amendment, a last-minute addition to the Dodd-Frank Act, drastically lowers swipe fees - the fee charged to merchants every time a customer pays with plastic - on debit cards issued by big banks, cutting into the banks' revenue while, presumably, lowering costs for merchants and therefore consumers. The reduction in fees was significant: the Amendment reduced fees to 24 cents from a previous average of 43 cents, according to a Federal Reserve Board report.

By Robert Braun, Partner, Jeffer Mangels Butler & Mitchell, LLP, JMM

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Why Hospitality Net Leads B2B in Hospitality

Learn what makes us the industry-leader in what we do.

Hospitality Net

Opinion Article

July 23, 2012

Hotel Lawyer: Experts Share Top 5 Tips On Picking The Right Hotel Operator And Brand For Your Hotel

There is nothing more important to the value and financial success of your hotel than selecting the right operator, and getting a management agreement with reasonable terms. At a recent meeting in Los Angeles, my partner and Hotel Lawyer Robert E. Braun of JMBM's Global Hospitality Group® moderated a panel of hotel industry leaders on some of the key issues owners should consider in selecting a new hotel operator.

By Jim Butler, Partner & Co-Chair Hospitality Practice, Blank Rome LLP, Blank Rome

Opinion Article

July 19, 2012

Losing The Expectation Of Privacy Bit By Bit, Byte By Byte

Hotels and restaurants are among many other businesses that monitor employees at work through video surveillance, and through employees' use of company-issued computers and smart phones. While employers gain benefits such as reducing theft, decreasing liability and ensuring safety procedures are followed, employees can feel that this electronic monitoring violates their privacy. In his article below, Mark Adams, a litigator in JMBM's Global Hospitality Group®, shares with us how courts are ruling in lawsuits that deal with electronic surveillance of employees. He also gives employers advice on how to prevent these lawsuits from happening.

JMM

Opinion Article

July 9, 2012

How to terminate a hotel management agreement: A Tale of Two Hotels -- Marriott's Edition Waikiki and Fairmont's Turnberry Isle Resort

Hotel Lawyer with an interesting comparison of two significant hotel takeovers -- Marriott Edition Waikiki becomes The Modern Honolulu and Fairmont Turnberry Isle & Resort drops Fairmont

By Jim Butler, Partner & Co-Chair Hospitality Practice, Blank Rome LLP, Blank Rome

Opinion Article

June 22, 2012

EB-5 Lawyer Alert #3: Update on California TEA designation procedure. What's the problem in California!

California adopted a new TEA policy as of April 30, 2012 which my partners Catherine Holmes and Victor Shum have been on top of from the outset. On June 19, 2012, the California Governor's Office held an open conference call to discuss further changes in California's procedures for designating Targeted Employment Areas or TEAs. There is some good news and some bad news. Here is an update on what transpired.

By Jim Butler, Partner & Co-Chair Hospitality Practice, Blank Rome LLP, Blank Rome

California, United States

Opinion Article

May 30, 2012

ADA Compliance And Defense Lawyer: ADA Experts Discuss Hottest Issues Facing The Hotel Industry Today

At a recent gathering in Los Angeles, a group of ADA experts convened to discuss the hottest issues facing our industry. The panel was moderated by my colleague David Sudeck, who was kind enough to write an article for our readers summarizing some of the matters discussed. The PowerPoint presentation prepared by the panelists is also available by clicking here

By Jim Butler, Partner & Co-Chair Hospitality Practice, Blank Rome LLP, Blank Rome

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Why Hospitality Net Leads B2B in Hospitality

Learn what makes us the industry-leader in what we do.

Hospitality Net

Opinion Article

May 24, 2012

Successful Joint Ventures For Hotel Development, Acquisition And Financing

At JMBM's recent hotel finance conference in Los Angeles, a panel of experts talked about how well joint ventures are working to provide financing for hotel development and acquisitions. The Joint Venture Panel from Meet the Money® 2012 featured 5 veteran hotel investors and operating partners, and was moderated by Guy Maisnik, hotel lawyer and Vice Chair of JMBM's Global Hospitality Group®.

By Jim Butler, Partner & Co-Chair Hospitality Practice, Blank Rome LLP, Blank Rome

Opinion Article

May 22, 2012

ADA compliance and defense lawyer alert: ADA pool lift deadline extended to January 31, 2013

This morning, the DOJ formally published an "Amendment of the Americans with Disabilities Act Title II and III Regulations to Extend Compliance Date for Certain Requirements Related to Existing Pools and Spas Provided by State and Local Governments and by Public Accommodations" (ADAAG Sections 242 and 1009 Standards for Accessible Design). The new pool lift Compliance Date is January 31, 2013. The Amendment acknowledges that the DOJ's January 31, 2012 technical advisory caused "significant concerns and misunderstandings among a substantial number of pool owners and operators" with respect to the new technical requirements pool lift must .

By Jim Butler, Partner & Co-Chair Hospitality Practice, Blank Rome LLP, Blank Rome

United States

Opinion Article

May 11, 2012

Hotel Lawyers in Los Angeles at JMBM's Meet the Money® 2012

The hotel lawyers at JMBM'S Global Hospitality Group® were out in force and mingling with about 350 hotel industry leaders that joined us in Los Angeles this week for the 22nd annual Meet the Money® 2012 conference. We are not in the conference business, and we don't make a profit on this event, so we run the conference at the highest level of excellence and the way we think best suits business-oriented deal makers.

By Jim Butler, Partner & Co-Chair Hospitality Practice, Blank Rome LLP, Blank Rome

Opinion Article

May 8, 2012

Ada Compliance And Defense Lawyer Alert: Charles Schwab Settles Claim Over Website Accessibility

On May 2, 2012, Charles Schwab & Co. announced an initiative to make its website more accessible for all customers, particularly those who are blind or have sight disabilities. This high-profile development was part of the settlement of a claim by Kit Lau, a Charles Schwab customer for more than 25 years.

By Jim Butler, Partner & Co-Chair Hospitality Practice, Blank Rome LLP, Blank Rome

Opinion Article

May 8, 2012

California's new TEA approach will discourage EB-5 investment in California

My partners, Catherine Holmes and Victor Shum, have alerted us to an important new development that will affect new development projects in California. The State of California has decided that it will not certify any new "targeted employment areas" or TEAs under the EB-5 immigrant investor visa program. If you develop hotels and other real estate, you are well aware of the financing opportunities provided by the EB-5 immigrant investor visa program -- and you are also know the importance of locating your project in a TEA.

By Jim Butler, Partner & Co-Chair Hospitality Practice, Blank Rome LLP, Blank Rome

Opinion Article

March 22, 2012

Hotel Lawyer: How To Negotiate A Hotel Management Agreement - 10 Tips For A Smoother Process

Here are 10 things to consider about making your process smoother and more successful. It seems like hotel management agreements are on everyone's mind these days. Development is coming back. Many owners of existing property are repositioning their hotel properties. And old management agreements continue to expire or occasionally are terminated.

By Jim Butler, Partner & Co-Chair Hospitality Practice, Blank Rome LLP, Blank Rome

Opinion Article

March 14, 2012

ADA defense and compliance lawyer: More clarification or confusion on March 15 ADA standards?

The hotel industry experts have published their forecasts for 2012 and they seem to agree on the following two predictions: (1) The hotel sector will continue to improve in 2012, with RevPar increasing anywhere from 4 to 6 percent, depending on which expert you follow. (2) It's going to be a rocky year for hotel loans held by lenders, particularly for those loans made at the peak of the last cycle in 2006 and 2007, and especially for loans that cannot be extended further. Some of these loans are securitized with complicated structures that involve multiple tranches of senior and junior debt sold. Others never got securitized and weigh heavily on lenders' books.

By Guy Maisnik, Partner, Vice Chair, Global Hospitality Group®, JMM

Opinion Article

March 9, 2012

2012 Legal Issues for Hotels In China: Flexibility on the horizon

What will be the key legal issues facing the hotel industry in China next year? We asked Dr. Ulrike Glueck (pictured) , Managing Partner of the Shanghai office of the international law firm CMS, and her Senior Associate Hugh Zhou, to share their expectations with The Hotel Yearbook. What will be the key legal issues facing the hotel industry in China next year? We asked Dr. Ulrike Glueck (pictured) , Managing Partner of the Shanghai office of the international law firm CMS, and her Senior Associate Hugh Zhou, to share their expectations with The Hotel Yearbook.

HYB

China